When I was introduced to YouTube in 2012, my 5th-grade self would come back from school looking forward to seeing what his favorite content creators have in store for him today. As cliché as it sounds, those were simpler times when a creator made videos because it was what excited him. The creator used his videos as a form of expression first and a source of income second. Unfortunately or fortunately, the scenario is much different at present, with equal blame for the change to be given to the platform and the creators. Here’s why I consider YouTube to now be an advertising firm rather than a “video sharing platform” as google claims.
Let us begin with the obvious. YouTube takes 45% of any advertising revenue earned on the platform from the creators with the number being even higher before the introduction of YouTube premium. In 2021 alone, the company amassed an unbelievable 28.8 billion dollars from its ad revenue alone.
An interesting point to note is that the content creators and the company earn more if the advertisement displayed on the screen is interacted with by the user, and the creators know this. This is why they push ads in high frequencies in every video with the hope of getting a click from at least one of them. However, there is a balance to be found between pushing ads to your audience and them being able to enjoy your videos without feeling overwhelmed. This is achieved by larger creators using the various ad formats that YouTube offers.
Now let us talk about the creator side of things. A popular British YouTuber, KSI, is the perfect example to be taken to talk about the way YouTube is an advertising platform for the creators as well. KSI began his YouTube journey back in 2009 when he was just another kid posting videos from his room until he began to gain massive popularity and soon rose to the top of the scene. He would release his
merchandise and like many other creators, would use his videos as a medium to advertise the merch. This is now common on the platform, and many creators use their merch as their main source of income. Coming back to KSI, he would soon turn his hobby of making music into a source of income as well as he would begin to release music as a certified artist. KSI had instant reach for his music as he would promote it heavily at the beginning and ending of every video he put out. The success of this strategy can clearly be seen as he was earlier signed under the label Island records but is now able to self-sustain his fanbase as an independent artist. In fact, he is also hosting smaller artists under his own label and using a similar type of format to promote them. This is just one of the income sources that KSI has been able to develop using his YouTube audience. Others include Misfits boxing, Prime hydration drink, sidemen merchandise, XIX vodka, and Sides. The cherry on top of this cake? I haven’t even mentioned the sponsorship deals that he receives from companies that believe his videos to be a great way to promote their business and reach the younger audience. And this is just one of the creators on one of the largest platforms in the world. The undeniably large number of income streams that a single YouTuber is able to pull because of his ability to use his videos as marketing cannot go unnoticed.
Earlier in this blog, I mentioned that this phenomena can be considered to be “unfortunate or
fortunate.” I say this because of the large number of eyes has attracted companies and creators
thereby increasing competition, and with competition comes quality. An overall rise in the quality of the
videos and marketing campaigns bought out by companies has made YouTube a richer experience for
the viewers. While the ads might get infuriating to have to skip, there is a case made for them being an overall boost to the platform. So, an advertising firm indeed, but an advertising firm where
everyone wins.
~ Aryaman Sharma, Third Year of Department of Electrical and Electronics Engineering